Mission Orientation, Institutional Voids and the Support Needs of Social Entrepreneurs

Abstract

Over the last few decades, support for nascent social entrepreneurs has increased drastically. The new support infrastructure often uses the same instruments as for commercial entrepreneurs. However, little is known about what support social entrepreneurs actually need and whether these needs vary for different types of entrepreneurs and institutional contexts. This paper explores the support needs of nascent social entrepreneurs. Reflecting the ongoing debate on the nature of social entrepreneurship, it presents hypotheses for two types of actors: “mission-first” entrepreneurs (vs. commercial entrepreneurs) and “hybrid entrepreneurs” (vs. entrepreneurs with one dominant value creation goal). The hypotheses are tested on a sample of 833 nascent entrepreneurs in 31 countries. The results indicate that the level of support needed depends on the type of social entrepreneur in question. The needs of mission-first entrepreneurs largely resemble those of commercial entrepreneurs. Hybrid entrepreneurs, on the other hand, require more direct support, access to networks and field-building support. Also, findings show that institutional voids increase support needs for all types of entrepreneurs. However, hybrid entrepreneurs require less additional support than other types of entrepreneurs when operating in countries with weak rule of law. Overall, the findings show that the support needs of social entrepreneurs are contingent on their mission orientation and their institutional context.